Tweet
Hi,
I have a client that runs a business as a partnership with one other partner.
They have not submitted any tax returns for the partnership (business commenced August 2009, so Feb 2010 return is overdue). I am getting their accounting records up to date, after which I will sort out their tax affairs.
Partner A has submitted their personal income tax return for 2010, showing only their employment income received from their permanent employment (the partnership is run seperately from permanent employment). They have not included any taxable profits/losses of the partnership in this tax return.
Partner B has not been registered for tax yet. I am going to evaluate the past few years' income to assess whether partner B should have been registered for tax in the past. They have also not accounted for any taxable profits/losses of the partnership, as they are not registered for tax yet.
Ok, so I understand it as follows:
They operate as equal partners, so the taxable profit/loss should have been split 50/50 between the two partners and accounted for in their personal income tax returns (as it is not a seperate entity like a pty)
For Partner A, how would I go about including this taxable profit/loss in their personal income tax return for 2010, as this return has already been submitted and assessed last year? Do I contact SARS and ask them to reopen that tax return?
For Partner B. If I evaluated the income and they should have been registered for tax already, do I just submit past returns and include the partnership's taxable profit/loss in the applicable periods?
Thanks!
I have a client that runs a business as a partnership with one other partner.
They have not submitted any tax returns for the partnership (business commenced August 2009, so Feb 2010 return is overdue). I am getting their accounting records up to date, after which I will sort out their tax affairs.
Partner A has submitted their personal income tax return for 2010, showing only their employment income received from their permanent employment (the partnership is run seperately from permanent employment). They have not included any taxable profits/losses of the partnership in this tax return.
Partner B has not been registered for tax yet. I am going to evaluate the past few years' income to assess whether partner B should have been registered for tax in the past. They have also not accounted for any taxable profits/losses of the partnership, as they are not registered for tax yet.
Ok, so I understand it as follows:
They operate as equal partners, so the taxable profit/loss should have been split 50/50 between the two partners and accounted for in their personal income tax returns (as it is not a seperate entity like a pty)
For Partner A, how would I go about including this taxable profit/loss in their personal income tax return for 2010, as this return has already been submitted and assessed last year? Do I contact SARS and ask them to reopen that tax return?
For Partner B. If I evaluated the income and they should have been registered for tax already, do I just submit past returns and include the partnership's taxable profit/loss in the applicable periods?
Thanks!
Comment